Megaupload Founder Hid From Cops in Panic Room

New Zealand police raided the fortified mansion of Megaupload founder "Kim Dotcom" today, and the arrest did not go smoothly. Police tell the AFP that when they arrived, Dotcom, who is also known as Kim Schmitz, "retreated into the house and activated a number of electronic locking mechanisms," eventually barricading himself inside a safe room police had to cut their way into. Once inside, they found Dotcom, 37, near what looked like a sawed-off shotgun.

"It was definitely not as simple as knocking at the front door," a detective said. Police arrested Dotcom, seized the gun and his pink Cadillac, and froze some $8.8 million in assets. Dotcom was denied bail, along with three other Megaupload employees. The arrests come at the behest of US authorities, who are seeking extradition. The FBI shut down Megaupload yesterday, accusing it of copyright violations; click to read about Anonymous' reaction. (More Kim Dotcom stories.)